Thompson Creek announces 2010 capital expenditure plans and revision of the
Endako Mine expansion project
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"We have increased our sustaining capital expenditures for our producing operations in 2010 as we proceed with maintenance and upgrades that had been postponed to conserve cash in 2009 and as we begin purchasing new equipment required for the extended 16-year mine life recently announced for the Thompson Creek Mine," said
"The purchase of new trucks, shovels and drills will amount to almost one-half of the estimated
The Company expects its sustaining capital expenditures in 2009 will total approximately
The Endako Mine expansion project includes the construction of a new, modern Endako mill, which will replace the existing 45-year-old mill and raise ore-processing capacity from the existing 31,000 tons per day to 55,000 tons per day. The new mill facility will eliminate the need for significant capital expenditures to upgrade and refurbish the existing Endako mill.
The Endako Mine expansion project was originally announced
"The delay gave us time to reassess the project's design and we have made a number of improvements which we believe will ensure the efficiency and reliability of the milling process and the planned significant reduction in operating costs," said
"Among the significant changes are an enhanced and more flexible pebble crusher circuit to ensure a finer grind and an enhanced automation system - both of which will contribute to improved recovery of molybdenum from the ore."
"In addition, all processing equipment except for the roaster will now be located in a larger new mill building. The original plan was to utilize the existing mill building and some existing equipment for the final stages of the flotation process in the production of molybdenum concentrate. The new mill building and equipment will be more reliable and more efficient, with this new design facilitating the exclusive dedication of the existing mill building to producing concentrate without disruption until the new mill is operational. The old mill will be mothballed once the new mill is fully operational and available in the event of possible further expansion."
"While the new design has raised the total capital cost of the Endako modernization and expansion project to C$498 million (including a contingency of C$60 million), with Thompson Creek's 75% share of the total at C$374 million, the project remains economically attractive and will, with a greater certainty, generate the expected significant reduction in per-pound cash processing costs. As a result, the Company's Board of Directors has approved the revised capital cost estimate and we are seeking the approval of our joint venture partner, Sojitz Corporation, in order to proceed with the project,"
Assuming an exchange rate of US$1 = C$1.05, approximately
As previously announced on
The capital expenditures will also include the acquisition of more trucks and other equipment to supply the mill with a higher volume of ore. The current mining plan provides for a widening of the area being mined as well as for the creation of a large single pit through the mining of ore contained in the walls separating the three existing pits.
Annual molybdenum production as a result of the expansion is expected to be approximately 15 to 16 million pounds, of which Thompson Creek's share would be about 11 to 12 million pounds. The Company's 75% share of 2009 production is expected to be in a range of 7 to 8 million pounds but in the absence of the modernization and expansion project, annual production in future years can be expected to gradually diminish due to declining grades.
About Thompson Creek Metals Company Inc.
Thompson Creek Metals Company Inc. is one of the largest publicly traded, pure molybdenum producers in the world. The Company owns the Thompson Creek open-pit molybdenum mine and mill in Idaho, a metallurgical roasting facility in Langeloth, Pennsylvania and a 75% share of the Endako open-pit mine, mill and roasting facility in northern British Columbia. Thompson Creek is evaluating the Mount Emmons Deposit, a high-grade underground molybdenum deposit near Crested Butte, Colorado. Thompson Creek has an option to acquire up to 75% of the Mount Emmons Deposit. The Company is continuing to pursue permitting of the Davidson Deposit, a high-grade underground molybdenum deposit near Smithers, B.C. The Company has approximately 750 employees. Its principal executive office is in
Cautionary Note Regarding Forward-Looking Statements ----------------------------------------------------
This news release contains "forward-looking information" within the meaning of the
Readers should refer to Thompson Creek's current annual information form which is available on SEDAR at www.sedar.com and is incorporated in its Annual Report on Form 40-F filed with the SEC which is available at www.sec.gov and subsequent continuous disclosure documents available at www.sedar.com and www.sec.gov for further information on mineral reserves and mineral resources, which is subject to the qualifications and notes set forth therein.
For further information: Wayne Cheveldayoff, Director of Investor Relations, Thompson Creek Metals Company Inc., Tel: (416) 860-1438, Toll free: 1-800-827-0992, [email protected]; Dan Symons, Renmark Financial Communications Inc., Tel.: (514) 939-3989, [email protected]
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